The automotive industry alliance is by tide outbreak or retreat?

In December 2018 06, 08:26 source: - China Auto News
Original title: automotive industry alliance is by tide outbreak or retreat?

In the automobile companies competing for the background of industry leading technology, combined with traditional auto industry is being replaced by the ecological system, alliance and cooperation dazzling.

Many of the participants in the new cooperation or alliance has been no longer confined to the traditional automotive industry, such as Silicon Valley startups or semiconductor company. Bring new skills and new ways of operating them for the automotive industry. They enable the car company can effectively shorten the development of automatic driving technology, electrification and mobility services and expand the time and cost sharing with competitors.

Senior analyst at Sam Abuelsamid Navigant Research Research Institute said, startups and other companies from outside the automotive industry "is expected to put in to the market will encounter technical difficulties." He also pointed out that the traditional car companies are also aware of their lack of software, electronic structure, especially intelligent learning knowledge.

Analysts said this failed to join the alliance of automobile manufacturers or large auto parts suppliers may even be behind the industry soon. Boston consulting firm senior partner and managing director Andreas Janz said, "quick action is wise, because after all, the final victory of the enterprise co.."

The development of technology industry contributed to the unprecedented Alliance

From the scope of cooperation, Ionity is one of the largest automotive industry alliance, alliance members include BMW group, Ford, Porsche, Daimler, Audi and Volkswagen brand, they seek to establish a high power electric vehicle charging network throughout europe.

In the forefront of technology specific aspects, such as automatic driving technology, there are cooperation.

BMW is building the ecological system to automatic driving as the center, including Intel, Fiat and Magna International Chrysler cars, Continental Airlines, such as Aptiv and Baidu. Chip maker Nvidia is Volvo, Continental group and Veoneer in automatic driving partner. Honda spent $2 billion 750 million to join GM's automatic driving vehicle department Cruise Automation. VW and Ford have announced the initial cooperation, trucks and vans based on follow-up may be extended to the autopilot.

What is remarkable is the first "horizontal cooperation among auto manufacturers." McKinsey Co senior partner Andreas Tschiesner said, "in the past, each company has its own supply chain, and vertical integration.

Volvo R & D department head Henrik Green in September this year on the "Automotive News Europe" said that if the car manufacturers hope the successful promotion of self driving cars, we must establish a series of partnerships and alliances. Green said: "no one player can complete all single-handed all, only through cooperation can win the game."

DDT partner Thomas Schiller said that with the development of technology and automatic driving power system gradually turned to electrification, high cost and technical complexity problems emerge, which makes the cooperation becomes imperative. "If you consider for automobile manufacturers to develop a complete Level 5 automatic driving, so in the current market conditions, it will cost about $10 billion," Schiller said, "the traditional automobile manufacturers hand to develop efficient internal combustion engine and spending huge money, on the other hand also advanced technology and high investment."

Horizontal alliance to create value

Although there have been new participants by way of cooperation into the automotive industry, but the traditional automobile manufacturers did not evade mutual cooperation. Since 2010, MITSUBISHI Daimler and Renault Nissan alliance has been in cooperation in the development of powertrain, trucks, pickup trucks and other vehicles. Although the two sides did not announce any major project, but the outgoing Daimler CEO Cai Che at this year's Paris auto show, the company still has many gaps can explore together with partners.

Project cooperation PSA group and GM Europe started in 2012 has ushered in a new achievement of trucks and SUV, at the same time, through cooperation with the general PSA also contributed to the final in 2017, complete the acquisition of GM Ou Baohe Waxman hall brand.

PSA Group CEO Tang Weishi said the familiarity between the two companies to make him believe that the deal will be successful. "In the past 4 years, I saw the team has been in a very efficient way of cooperation, joint efforts." He said at the Frankfurt auto show in 2017.

Between the traditional car manufacturers alliance is trying to solve the contradiction between the future technology development and current market promotion. This year, Ford and Volkswagen announced that they will become trucks and partners, Ford recently acknowledged that the two companies are also discussed for automatic driving investment.

For smaller manufacturers cooperation with bigger rivals may be fighting for survival. Last year, Mazda and TOYOTA signed a business and capital alliance, aims to create new value for the future of mobile services, including electrical and intelligent network project.

"The smaller market participants will face tougher market competition." Abuelsamid said. He said that Mazda can use the size of TOYOTA, at the same time to provide your own DNA brand as a focus on the design and the movement for cooperation between the two sides. Toyota Auto Body Co President Akiotoyoda described this relationship as "we will never let the car become a commodity desire".

Abuelsamid said, it is this fear to promote many new forms of alliance. "As the industry from a single vehicle owned by the single owner, to share mobile travel services, the company will be more difficult to achieve differentiation." He said, "today, if you have a car, that is the expression of ownership, but if you just demand as service vehicles, vehicles are not important to you." He continued, "the difference of the product is reduced, we will see fewer companies to provide more services and products." Tschiesner responded to this view, that most car manufacturers will be commercialized called "can be described as the most horrible picture".

Both cooperation and competition is more healthy

Talking about the union, the total can not avoid the auto industry's most successful in recent decades the alliance: the Renault Nissan Alliance, which was founded in 1999, MITSUBISHI officially joined the Union in 2016. Despite the importance of Renault Nissan holding shares, but the two companies operate independently. Recently, Nissan due to alleged financial irregularities, alliance CEO Carlos Genn was arrested in Japan, the alliance's future turmoil. The alliance has become the world's top car manufacturers, comparable with the Volkswagen Group, annual production scale of more than 10 million cars.

Tschiesner said that in some cases, competitors are becoming partners in a field with "hand", but to compete in another field. This is BMW and Daimler, they are short-term rental service DriveNow and Car2Go fusion respectively. The essence of competition is not between Daimler and BMW." Schiller said, "in the field of car sharing, the traditional auto industry competitors is car sharing technology providers, such as excellent step. To know that in this segment, only two can make money in this ecosystem, so the alliance of great significance."

Ford CEO Jim Hackett said, with the public relations of cooperation emerge is a "delicate dance", but he also pointed out that although the two sides of the truck to discuss cooperation more smoothly, but Ford will still be cautious both in electric vehicles or cooperation in South America operations. "We are still in the competition there are many fields." He said.

As the company seeks to protect its intellectual property rights, there are still some forbidden areas of cooperation. "We definitely want to participate in the cooperation. But in some areas, we don't need partners, for example, in sensor." Valeo chief executive Jacques Aschenbroich exhibition in Paris said in an interview, "of course, we have a good relationship with the Mobileye [production] its front camera, there are a lot of orders, but we are currently on the market only with laser radar enterprises. Here is our territory."

Intellectual property rights, data protection and network security are all areas of concern. Analysts said, "large enterprises hope to their customers to ensure that they can protect their data." Tschiesner said, because the data of global safety regulations are different, so if the union or ecological system is regarded as too threatening, antitrust rules may also play a role.

Janz said, to encourage the alliance at the same time, also need to pay more attention to network security. "Consumers in the face of these digital platforms will become more vulnerable." He said, "hacking happen every day. For example, before the emergence of the first self driving cars deliberately crash, the industry is changing to digital security awareness."

The alliance does not involve equity more flexibility

Different with the traditional car merger or acquisition at present, a lot of cooperation or cross-border joint is more like without exploration, verification of the business model for example, the ecological system based on automatic driving. "This is why we see so many different forms of partnership." Tschiesner said, "the company is trying to eliminate some defects and accumulate experience."

Analysts say one thing automakers are learning is that how to work like the Silicon Valley high tech enterprises. For those in the models listed before must take years of development and testing of the automobile manufacturers, the high-tech enterprises dare to fail culture may be unacceptable.

Janz said: "in many forms of cooperation, there are still many participants in venture capital operation mode. This means that you can not guarantee that it can achieve the desired effect."

This also means that if a technology or business model is not successful, the relationship of cooperation rather than equity control can make enterprises to participate in a more flexible way. "". Janz said, trying to guide the new technology or business model of the alliance and the ecosystem is more like dating, not marriage. "United are very smart, but not that in the next 10 years partnership can continue to succeed." He said, "manufacturers need to maintain flexibility, so once they think it is a wrong choice, they can adjust their strategy." (Tao Xiaozhe)

(commissioning editor Wang Qing and Hu Yigong)

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